1) Is Wisconsin’s Foxconn deal an example of a general business incentive or a targeted business incentive? Briefly explain.

2) What were some possible reasons that Wisconsin’s state and local governments offered approximately $3 billion in state incentives and $1 billion in local incentives to Foxconn?

3) What are some potential costs/risks state and local government officials should be mindful of when offering business incentives to large corporations such as Foxconn?

4) Based on the investigative report on The Verge, do you think Foxconn had a solid business plan when entering into the business incentive contract with Wisconsin in 2017? Why do you think Foxconn agreed to the terms of the contract in 2017? How did Foxconn exploit the contract loophole related to income tax credit eligibility in its attempt to claim tax credits for 2019?

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1 The Wisconsin Foxconn deal is an example of a targeted business incentive Targeted incentives are incentives that are offered to specific companies ... View the full answer